Avoid Rush Hour and Get Paid by the State

The finance and transportation ministries are looking for ways to convert the vehicle tax structure from one based on ownership to one based on how far drivers travel and when.

Private transportation generates a windfall in tax money: NIS 27.8 billion a year, about 10% of government revenues. This includes NIS 12.3 billion for cars themselves – purchase tax, customs, and annual licensing – and NIS 15.4 billion on assorted fuel taxes. These taxes are, in a sense, regressive, in that residents of outlying areas invariably have longer distances to travel and therefore pay more.